Conduct a sensitivity analysis

Reference no: EM13713591

Florida Keys Hospital
Traditional Project Analysis;
1- To give the board of directors a better feel for the impact of inflation on the outpatientsurgery center, prepare a two-variable sensitivity analysis using inflation rate of chargesand inflation rate on costs.

2- Conduct a sensitivity analysis. As part of your analysis, create a table and a graph that shows the sensitivity of NPV to procedures per day, average charges, and salvage value. Assume that each variable can deviate from its base case by ±10, ±20, and ±30 percent. Discuss the advantages and disadvantages of sensitivity analysis.

Reference no: EM13713591

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